Accounting ððŠ Flashcards
1
Q
Accounting
A
A process of control on the expenditure of a business and is a vehicle for the publication of figures for profit, value and cash.
2
Q
Consistency
A
All accounts will be produced in the same way.
3
Q
Going concern
A
Assumes the business is operating as normal.
4
Q
Matching (accurals)
A
The timing of information put into accounts.
5
Q
Materiality
A
Calculating the value of the business requires a realistic figure to be reached.
6
Q
Objectivity
A
Accounts must be realistic and based on facts.
7
Q
Prudence
A
Not overstating the financial situation.
8
Q
Realisation
A
When the legal ownership changes hands.
